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Photo by Judita Grigelytė (VŽ).
Real estate company Eika borrowed LTL 5 million over 2 years by issuing bonds. Eur for 5%.
Added by I. Dargytė’s comment to VŽ.
According to the issuer, the distribution attracted 107 investors, of which 100 were retail, and there were also institutional investors. Investors lent from a low of EUR 1,000 to EUR 500,000. Among the investors – UAB FPĮ Gerovės valdymas.
Eika sought loans in the 4.5-5% range. The company states that 61% of investors requested 4.5%, 30% wanted 5% and 9% between 4.6 and 4.99%.
According to the issuer’s representatives, an interest rate of 5% was set, although there was the option of issuing a smaller issue with the lower interest rate.
“We carried out the distribution in the aggravating circumstances of the pandemic, when an increasing number of investors switched remotely, but thanks to joint efforts with partners, we managed to keep buyers interested and successfully complete the distribution of bonds “, Indrė Dargytė, member of Eika Asset Management.
The issuer is not required to indicate the relationship between supply and demand.
“In our case, the demand for bonds matched the supply and, despite the deterioration of expectations in the capital markets, it allowed us to secure a positive result,” says I. Dargytė.
“As I mentioned in the report, the demand fully matched the supply: the entire allocation was filled on the last day, so no attempt was made to generate an additional over-subscription,” I. Dargytė added to VŽ.
Interest will be paid to investors every six months and the bonds will be repaid after two years.
The bonds issued will not be listed on the stock market.
“We think 5 million. A number worth EUR is too small to be worth listing, but if we issue more in the future, we plan to include it. In the case of this issue, Šiaulių bankas will help maintain liquidity in the secondary market. for those who want to sell / buy bonds in the future, ”I. Dargytė told VŽ.
The company plans to borrow to return to the capital market in one year, depending on demand.
Eika foresees that the funds raised will be used for the development of future projects of the business group, and will mainly go to St. A planned coexistence project on Stepono Street.
Earlier this month, the real estate fund of the investment management company Capitalica Asset Management Capitalica Baltic Real Estate Fund I for the first 8 million. EUR 3 million was borrowed during the distribution phase of the EUR 3-year bond issue. Eur for 6.5% interest.
The offer was made in a range of 5.5% to 6.5%, provided by auction at an annual interest rate of 6.5%. Invested by 80 private and institutional investors.
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